Thursday, September 17, 2009

Market Observations

As you can see from the rising wedge, we have broken out above the wedge and come back to support at the uptrend line. The first chart also indicates the 38% time projection of the entire 17 month bear market. If the market is going to rally, it need to do it SOON. If it break back below the trend line then we are looking very much like we got a throw over...and that may be it.

There are a couple of things going for this of the things is that the Transports had the highest volume reversal of the entire rally and I believe the whole year. The SP Midcaps also had a pretty nasty high volume reversal. Bearfund ETF's had their second high volume up day today. There are a few other charts of note which I have included. I will add more commentary later.

Also, at the end of this post is the ISEE Put/Call ratio which demonstrates a fairly extreme optimism. ISEE was discussed on Kenny's, I thought I would include a chart. it hit 242 today.

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